Google
has launched an advertising platform that aims to copy the success of its
AdWords
pay-per-click online advertising programme in the world of digitally encoded
TV.
The search giant has signed an agreement with satellite TV provider
EchoStar,
which operates the
DISH
Network, and cable provider
Astound
Cable to host a new TV ad programme.
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In a process similar process to AdWords, advertisers will bid against each
other to determine the price of available slots based on demographics, time of
day and TV channel.
Advertising charges are based on the number of people that viewed the
commercial, and advertisers will be provided with a detailed audience report
through data collected from set-top boxes.
Google claimed that the programme will open up the TV market to small
advertisers just as AdWords did for online ads.
AdWords is credited with popularising the pay-per-click advertising market.
In addition to introducing an auction model to set prices for popular keywords,
Google pioneered the text advertising model.
The latter allows firms to ensure that marketing messages show up only with
specific keywords.
Google also offers companies control over their advertising outlay by
allowing them to set advertising budgets. No more ads will be displayed after a
daily budget is exhausted.
AdWords motivates advertisers to use relevant keywords by ranking ads based
on the number of clicks from users. The ad with the most clicks receives the top
spot, while the one with the least clicks is ranked at the bottom.
Google is already trying to apply its AdWords model to radio advertising. The
search provider
acquired dMarc
Broadcasting for $1.2bn in cash last year, and has undertaken small-scale
experiments in print advertising.
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